The discussion around the Basel Committee's guidance on cryptocurrency is once again in the spotlight, particularly regarding global digital asset regulation.
Basel Committee Crypto Guidance
The Basel Committee on Banking Supervision has adopted rules regarding how banks should manage their direct investments in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, and Cardano (ADA). This guidance, known as the Basel Crypto Standard, was initially revised on July 17, 2024, and it is set to take effect this year, according to remarks by Nikhil Joshi, COO of EMURGO.
Growing Adoption and Ties to Top Digital Currencies
In Asia, particularly in Singapore, regulators are favorably receiving the Basel guidelines, leading to greater acceptance in the region. The Monetary Authority of Singapore is actively ensuring that banks and crypto entities comply with the rules. It is anticipated that regulators in Malaysia, Indonesia, Thailand, and the Philippines will soon take similar actions.
Crypto Regulatory Trends and Expectations
Globally, regulators are working to establish a robust regulatory framework for the burgeoning crypto sector. Reports indicate that while some measures were more lenient, particularly during the Trump administration, the situation is evolving. The crypto market is expected to improve significantly in the coming months, possibly leading to several altcoin ETF filings being approved by the SEC.
The Basel Committee's new rules on cryptocurrency underscore the importance of regulation to protect market participants, which could significantly impact digital assets in the coming years.
